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January 22, 2007 7:00 AM, EST

Moody’s Downgrades ArvinMeritor’s Debt Rating

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Moody’s Investors Service cut its rating on components maker ArvinMeritor Inc., saying the company’s profits will likely remain under pressure despite recent progress in cutting its debt, Reuters reported.ArvinMeritor has been pressured by significant production cuts at several of its largest light vehicle customers, as have other manufacturers, but has been supported by strength in its heavy truck parts business. Reuters said.Moody’s cut ArvinMeritor's corporate family rating by one notch to “Ba3,” which is three steps below investment grade, from “Ba2.” The outlook is stable, meaning another rating change is not expected over the next 12 to 18 months, Reuters reported.